India Glycols (INDIAGLYCO)

FairStock Score: 43/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Profit growth of 20.03% is outpacing sales growth of 13.04%, indicating operating leverage and cost discipline.
• Piotroski F-Score of 7/9 points to solid financial health across profitability, leverage, and efficiency.
• Promoter holding of 59.63% aligns management's interests with minority shareholders.
• Latest quarter sales of ₹1,102 Cr and net profit of ₹68 Cr show continued momentum.
• ROE of 12.51% and ROCE of 12.35% are respectable, with debt/equity of 0.86 still manageable.

Concerns

• Valuation is rich: P/E of 23.84 and P/B of 3.69 leave little margin of safety for a business earning a 12.51% ROE.
• Dividend yield of just 0.52% means shareholders receive negligible cash income while waiting.
• Debt/equity of 0.86 is moderate; if profit growth slows, the debt burden could become more uncomfortable.
• FairStock Score of 36/100 and the wide 52-week range of ₹792.50 to ₹1,222.00 suggest mixed quality and price volatility.

AI Analysis

India Glycols is a mixed bag. At ₹971.65, the market is asking ₹6,448 Cr for a business that earns around 12.5% on equity and 12.35% on capital. That is respectable, but not exceptional. Paying 23.84 times earnings and 3.69 times book value leaves little margin for safety. The latest quarter, with sales of ₹1,102 Cr and net profit of ₹68 Cr, continues the momentum, and the trailing profit growth of 20.03% is better than the 13.04% sales growth—evidence of some operating leverage. The Piotroski score of 7/9 adds comfort: the company is not obviously deteriorating. Promoter holding of 59.63% is good; those who run the shop own a large slice. However, the balance sheet is not conservative—debt/equity of 0.86—and the 0.52% dividend yield means I am not being paid to wait. A PEG of 1.44 suggests growth is not dirt cheap. In Graham's language, this is not a clear 'margin of safety.' I would want a lower price, or stronger evidence of a durable moat, before treating it as a high-conviction buy. The 52-week range of ₹792.50 to ₹1,222.00 also tells me Mr. Market is moody; I would prefer the lower end. For now, this is a decent compounder, but at this quote, the price already assumes a lot of good news. I would rather pass and wait for a more favourable price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer